A study examining the UK rental market ahead of forthcoming changes to buy-to-let stamp duty being introduced in April has found that the average Briton spends £11,100 on rent before buying their first home.
The survey, carried out by letting agent Harry Dhaliwal, also found that the average person rents for over three years (38 months) before buying for the first time.
The market analysis also found that British people leave home to rent at an average age of 20.9 years. Whilst just under 60% (58.93%) of people believe it is financially unwise to rent, 24.69% do not view renting as unwise.
In addition to spending an average of £11,100.67 on rent, the average person spends £577.64 on letting fees when renting and £587.93 in security deposits.
Of those deposits an average amount of £511.73 is recouped by renters, with 80% of people getting full rental deposits back. Cleaning fees are most common reason for deductions from deposits, whilst damage to property is the second most frequent reason.
The most common number of homes rented before buying is one (for 55.63% of people) followed by two (19.98%), with most people renting alone (29%) or with one other person (55.51%).
Industry related figures show that 22% of households in the UK are now rented from private landlords, up from 9% in 1985. The average rent in UK is £761 per month including rents in London, though excluding London the average drops to £689 per month across the rest of the UK. Average monthly rent in London is now £1560.
Manchester based letting agent Harry Dhaliwal who runs the city’s franchise of the Belvoir group, commented, “Sometimes the rhetoric around generation rent becomes quite exaggerated and whilst the rental market is growing so is the quality and variety of rental property. The findings of our survey highlight that renting across the UK is not as expensive as sometimes reported and most people get full deposits back from landlords. It remains to be seen what affect the stamp duty changes to buy-to-let purchases will have in April.”
“Whilst the struggles for first time buyers in London and high rental cost in the capital are well documented, the picture across the UK in general may not be as grey as it is sometimes depicted. There are superb professional opportunities in most of the UK’s main cities and in the digital age the flexibility around employment and running a business mean renting or buying outside London has probably never been more attractive.”